According to data from the analytical platform SpotOnChain, large investors bought almost $57 million in Ethereum (ETH). From this, we can conclude that whales remain confident in the price dynamics of the asset, despite the prevalence of bearish sentiment in the broader market.
Whales are still confident in Ethereum
According to SpotOnChain, whales have made several large transactions over the past 24 hours. The most notable of these was wallet transaction 0x3d4, which withdrew 8,877 ETH worth about $29 million from Binance. He previously transferred 14,877 ETH from the same exchange. This holder’s average purchase price for the asset is $2,863, which means it currently has an unrealized gain of $6.02 million.
Wallet 0x0d7 withdrew 1,800 Ethereum worth $5.71 million from Binance. It is noteworthy that this was the first transaction he registered. Another large transfer was made by whale 0x435, who sent 7,128 ETH worth about $22.2 million from the exchange.
Historically, significant whale activity, whether buying or selling, has served as a key indicator of potential changes in the market, signaling impending volatility or forecasting possible stabilization. Thus, the latest actions of large wallets can significantly affect the price dynamics of the second largest cryptocurrency by capitalization.
Crypto community reacts
Members of the crypto community speculate that whales are purchasing ETH in anticipation of the possible approval of spot ETFs in the US. The tool can democratize investments in the second largest cryptocurrency by capitalization. The deadline for applications from a number of market participants to launch spot ETH-ETFs will come in May 2024.
Approval of Ethereum ETFs are coming.. !!
— Open4profit (@open4profit) April 23, 2024
While the US is still discussing the viability of spot ETH ETFs, Hong Kong regulators have approved several applications to launch the instrument.
Ethereum developer Consensys vs. SEC Over Ethereum Status
Ethereum developer challenges the SEC’s recent actions, which imply Ethereum might be categorized as a security. The company received a Wells notice on April 10, signaling the SEC’s intent to enforce securities regulations against Consensys for its MetaMask wallet product. Consensys rebuts the assertion that it functions as a broker, highlighting that MetaMask simply acts as an interface and does not oversee customer assets or transactions. The firm argues that this characterization could weaken the established perception of ETH as a commodity, not a security.
The lawsuit also cites a 2018 speech by former SEC Director Bill Hinman, which indicated that Ethereum was viewed as a commodity. Additionally, the Commodities Futures Trading Commission (CFTC), which supervises derivative products linked to Ethereum, has also acknowledged cryptocurrency as a commodity, contributing to the regulatory perplexity.
